Choco Paradise Sdn Bhd goes through two processes which is conching and blending

process. The company manufactures three joint products known as Dark chocolate, Milk

Chocolate and White Chocolate; and a by-product, Cocoa Butter.

The input in Conching Process is transferred to Blending Process for final process, where

three joint products are produced. Cocoa Butter is produced upon the completion of

Blending Process with further processing costs of RM1.00 per kg. The selling price of Cocoa

Butter is RM4.50 per kg. The net realizable value of Cocoa Butter is then used to reduce the

production costs of Blending Process.

Below is the information extracted in each process for the month of April 2021:

Conching Process Blending Process

Opening Work

in Progress

- 150kg (total cost RM4,500)

(60% complete for additional materials

and 70% conversion costs)

Input materials RM25.00 per kg @ 1,000kg RM15.00 per kg @ 500kg

Direct Labour RM5 per hour @ 1,800 hours RM2.50 per hour @ 600 hours

Overhead RM2.50 per Direct Labour Hours RM1.80 per Direct Labour Hours

Defective units 130kg 120kg

Expected Loss 10% of Input 10% of Production

Scrap value

per kg

RM3.50 RM3.50

Output: ? Finished Goods:

Dark Chocolate: 20%

Milk Chocolate: 40%

White Chocolate: 35%

Cocoa Butter: 5%

Closing Work

in Progress

- 200 kg

(70% complete for additional materials

and 80% conversion costs)

The joint costs of joint products are to apportion using physical units basis.

b. Prepare Conching Process account

(5 marks)

c. Prepare Blending Process account. Support your answer with relevant statements.

(Provide CPU to four decimal points).